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V3057-20 13 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

VAT refunds for uncompensated input tax may be requested if the four-year limit is exceeded

A company erroneously recorded deductible VAT as carry-forward amounts from previous periods. The DGT clarifies that while the right to deduction and offsetting expires after four years, the right to a refund of the excess does not expire and may be requested in accordance with the General Tax Law.

The question raised

Appropriate procedure for deducting the amounts incurred and the statute of limitations on the right to deduct such amounts.

The DGT's ruling

The right to deduction and to the offsetting of excess amounts expires four years after the accrual or the original return. However, if after those four years the excess has not been able to be offset, the taxpayer may request the refund of said amounts during the limitation period established by the General Tax Law. The expiration of the right to deduct does not prevent the recovery of the credit through the refund procedure to avoid unjust enrichment by the Administration.

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